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Which of the following costs is most likely to decrease when the number of warehouses in a distribution network increases?
Suggested Answer: C
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12 comments · newest first
KA
Kattie
2 months ago
I feel like D) Handling costs could also decrease. More warehouses could streamline processes.
AR
Arlen
2 months ago
I agree, but what about A) Inventory costs? More locations might reduce stock levels.
RO
Rochell
2 months ago
I think it's C) Transportation costs. More warehouses mean shorter distances.
DE
Desire
2 months ago
C) Transportation costs might actually decrease too, right?
VI
Vicky
2 months ago
B) Packaging costs? That doesn't make sense to me.
CH
Chery
2 months ago
Really? I thought transportation costs would go up instead.
AL
Alesia
3 months ago
Totally agree, more warehouses means less stock needed in each!
MI
Mirta
3 months ago
A) Inventory costs usually go down with more warehouses.
WI
Winfred
3 months ago
I’m leaning towards inventory costs too, but I wonder if packaging costs could be affected as well.
MA
Mabel
3 months ago
Handling costs could also be a factor, but I feel like they might not decrease as much as the others.
CE
Ceola
3 months ago
I remember a practice question about distribution networks, and I think transportation costs might actually decrease because of shorter delivery distances.
EL
Eleonore
4 months ago
I think it might be inventory costs since more warehouses could mean less stock held in each one, but I'm not entirely sure.